https://www.taxtmi.com/caselaws?id=796085 Rural agricultural land situated beyond the prescribed municipal distance is not a capital asset where contemporaneous revenue records establish agricultural use and an official, unrebutted expert distance certificate supports its rural character. Enhanced compensation for compulsory acquisition of such land is therefore not chargeable to tax. Interest awarded under section 28 of the Land Acquisition Act is an accretion to and integral part of enhanced compensation, rather than separate income from other sources. Accordingly, where the underlying compensation is non-taxable because the land is not a capital asset, the section 28 interest also remains outside the charge of tax. en-us Mon, 27 Jul 2026 00:00:00 +0530 Fri, 31 Jul 2026 08:27:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796085 Rural agricultural land situated beyond the prescribed municipal distance is not a capital asset where contemporaneous revenue records establish agricultural use and an official, unrebutted expert distance certificate supports its rural character. Enhanced compensation for compulsory acquisition of such land is therefore not chargeable to tax. Interest awarded under section 28 of the Land Acquisition Act is an accretion to and integral part of enhanced compensation, rather than separate income from other sources. Accordingly, where the underlying compensation is non-taxable because the land is not a capital asset, the section 28 interest also remains outside the charge of tax. Case-Laws Income Tax Mon, 27 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796085